Comstock gets five-year $1.58 billion revolver on acquiring Covey Park

By Wendy Van Sickle

Columbus, Ohio, July 18 – Comstock Resources, Inc. obtained a five-year revolving credit facility with an initial borrowing base of $1,575,000,000 on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The company elected to set the committed borrowing base at $1.5 billion. The borrowing base will be redetermined semiannually.

The new credit facility was obtained in connection with Comstock’s acquisition of Covey Park Energy LLC and replaces Comstock’s and Covey Park’s existing credit facilities.

Interest on the loans is Libor plus 175 basis points to 275 bps, based on use of the borrowing base. The unused fee will be 37.5 bps to 50 bps.

BMO Capital Markers Corp. is the bookrunner; Bank of Montreal is the administrative agent; BMO Capital Markets, BOFA Securities, Inc., Wells Fargo Securities, LLC, Capital One, NA, Fifth Third Bank, Mizuho Bank, Ltd., Natixis, New York Branch and Regions Capital Markets are the joint lead arrangers; Bank of America and Wells Fargo Bank, NA are the co-syndication agents; and Fifth Third and Mizuho are the co-documentation agents.

The facility will mature on July 16, 2024.

Proceeds may be used for general corporate purposes.

Comstock Resources is based in Frisco, Texas. Covey Park is based in Dallas. Both are oil and natural gas exploration and production companies.

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